• Spark (SPK) has risen 13.51% in 24 hours and 14.34% weekly.
• Trading volume jumps 427.18%, showing stronger market activity.
• Technical signals point to a short-term bullish recovery.
• The funding rate suggests a potential short squeeze.

Spark (SPK) is drawing attention in the crypto market as it extends its upward momentum. The token has surged 13.51% in the past 24 hours, while weekly performance shows a 14.34% gain. At the time of writing, SPK is trading at $0.06852 with a 24-hour trading volume of $228.89 million.

This surge in activity reflects a massive 427.18% increase compared to the previous day. Its market capitalization currently stands at $114.12 million, suggesting that investors are showing renewed interest in the project.

Also Read: Spark (SPK) Volume Hits $147M, Eyes $0.22

SPK Technical Indicators Show Recovery Signs

The two-day price chart demonstrates the initial spark of a recovery in a long downtrend. The price is now able to trade above the EMA (9) at $0.06623, a first in weeks. The breakout is a good sign that short-term bullish momentum is returning.

Bollinger Bands are showing contracting volatility, and the first resistance level is on the middle band of $0.08025. A close above there would take the price up towards the upper band near $0.12047. Below, the main support is in the area around $0.06200 and $0.06600. Breaking through that area could take the token down towards the support area around $0.04000.

RSI and MACD Point to Momentum Shift

Its momentum indicators are hinting at a trend shift. The RSI is 47.36, trending moderately above the signal line, which is an indication of rising buying pressure following an extended period of consolidation. Despite still being lower than the 50-neutral mark, the increase is an indication of rising sentiment.

Conversely, the MACD line is closing in on the signal line, with the bars in the histogram dying down in bearish intensity. A confirmed move would give weightage to the bullish argument, and a bigger rally in the coming days could be triggered.

Derivatives Market Signals Mixed Sentiment

Moreover, derivatives data reveal heightened activity. SPK Open Interest (OI) rose by 17.82% to $59.49 million, revealing participation by traders despite volatility. The rise in OI and volume is a positive indicator usually linked to speculative short-term strategies.

The OI-weighted funding rate is -0.3266% at the moment, which means shorts are dominant and paying money to remain in positions. The repeated negative funding mirrors recent selling pressures, but it does encourage the possibility of a squeeze. With liquidity in low supply near resistance, a breakout at levels above $0.08025 risks increasing volatility.

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